WFM Redefined: Balancing CX, Employee Engagement, and Operational Excellence
April 2025
The amount of research and development (R&D) invested in workforce management (WFM) solutions in 2024 and continuing into 2025 is greater than ever, and the growing interest in new capabilities and features is drawing attention to limitations in some of the market’s older applications. WFM is in demand from first-time users who want an easy-to-use tool to replace their spreadsheets, small and midsized businesses (SMBs) that need automation to optimize their omnichannel servicing departments, and forward-thinking clients in organizations of all sizes who require advanced functionality to help manage increasingly complex operating environments. These are some of the reasons that WFM was selected by 40.8% of respondents in DMG’s annual worldwide survey of customer experience (CX) business and IT goals conducted in December 2024, making it the second-highest technology investment for contact centers in 2025.
AI is a Growth Driver
The most impactful trend for WFM solutions in 2025, like all other contact center systems, is the addition of artificial intelligence (AI) and automation to increase performance, effectiveness, and ease of use. Artificial intelligence is being applied to enhance more than algorithms; it is also driving improvements in employee scheduling, agent self-service, vacation/time-off planning, intraday management, and more. AI is needed to transform WFM into agile applications that identify an optimal mix of agent and enterprise scheduling needs and intraday requirements.
New Market Competitors
More contact center as a service (CCaaS) providers are adding native capabilities to their platforms to take advantage of the growing demand for WFM functionality. This threat from CCaaS providers is driving some established WFM providers to introduce new and enhanced offerings that are more responsive to market needs. Additionally, there are also new competitors who have come to market during the last few years with offerings intended to address the need for easier-to-use and less costly WFM solutions.
Expanding Opportunities for WFM Solutions
The opportunities for WFM solutions are growing throughout enterprises as their capabilities are expanding. Contact center leaders are asking WFM vendors to help them identify the optimal mix of live and automated agents, as the demand for self-service grows. Enterprise executives are thinking about applying WFM capabilities and best practices in back-office operations to boost productivity and enhance quality. Contact center and enterprise executives are both hoping that WFM solution advancements that are intended to balance the needs of the company and employees and actively engage agents in selecting working hours, time-off, lunches, and breaks will reduce attrition and improve the perception of operating environments by making them better places to work.
Final Thoughts
The WFM market has become highly active and innovative during the last few years, with new competitors and enhanced solutions and capabilities from established providers. AI enables these enhancements, but so does the change in employee expectations. WFM solutions have entered a new period where they are going to be instrumental in improving employee engagement and reducing agent attrition. The new features coming out in the new and enhanced WFM offerings are worth a look, as they should make a measurable contribution to contact centers and other operating environments that are interested in transformation.
To learn more about the new and enhanced WFM solutions and market innovation, please see DMG’s recently released industry report, Workforce Management for the Enterprise. This Report provides an in-depth analysis of this evolving market, solutions, competitive landscape, trends and challenges, market activity, pricing, and includes over 175+ RFP-like questions to enable prospects to quickly appreciate the differences in the offerings. If you’d like help in selecting a new WFM platform, please reach out to Deborah Navarra at deborah.navarra@dmgconsult.com.